Topical Questions 2022-02-01
2022-02-01
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question arises from the need for the Chancellor to clarify his department's role and current initiatives.
If he will make a statement on his departmental responsibilities. Will he update the House on recent economic developments, job creation efforts, and unemployment trends?
Thanks to our vaccine booster roll-out, we now have one of the most open economies in Europe, and thanks to our economic plan, we are set to have one of the highest growth rates in the G7 this year and last. We continue to deliver on our plan for jobs, doubling down with a new target to move half a million more people off welfare and into work by the end of June. Unemployment is falling and is now down to almost record lows. Youth unemployment is already at record lows. All of this shows that our plan for jobs is working.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The question addresses concerns about the effectiveness of sanctions against Russia and calls for swift action on money laundering.
People in Ukraine are living in dread at the prospect of Russian invasion. While the UK Government talk tough about sanctions, US think-tanks warn that the UK is such a haven for money laundering that such sanctions would not be meaningful. Will the Chancellor take heed of Lord Agnew's powerful resignation speech and bring his powerful economic crime Bill before the House as soon as possible?
With regard to sanctions, as I said to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), nothing is off the table. It is right that we work with our international partners to develop the most robust sanctions package that we can. The hon. Lady can rest assured that I and my team are doing that. With regard to the economic crime Bill, which contains important measures to strengthen our ability to tackle money laundering, obviously it would not be right for me to pre-empt the Queen's Speech, but the hon. Lady can be assured that I, the Home Secretary and others fully support the Bill.
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Assessment & feedback
Pre-empts Queen's Speech on economic crime bill specifics
Pre-Empting Speech
Response accuracy
Q3
Direct Answer
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Context
The question concerns the adequacy of funding for repairing potholes in light of rising costs.
Will my right hon. Friend urgently review the Government's pothole fund and consider whether the level is sufficient to adequately maintain the road networks, given the current rising cost of materials and labour? Will he also consider setting the budgets for three or more years ahead, to allow councils to plan more effectively, rather than it being an annual allocation?
My hon. Friend makes an excellent point about giving local councils that certainty to plan budgets years at a time. That is why I am pleased that last year's spending review was a multi-year spending review—the first we have had in some time—so there are now three-year budgets in place to enable that planning. In terms of the overall quantum, it is £2.7 billion, which represents a 10% increase on the amount we spent on local maintenance in the last Parliament. Hopefully that is reassuring to her and her local council.
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Assessment & feedback
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Q4
Partial Answer
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Context
The question highlights serious issues with fraud in government support schemes, citing specific examples of misuse and loss.
Mr Speaker:
“Schoolboy errors… a combination of arrogance, indolence and ignorance… nothing less than woeful.”—[Official Report, House of Lords, 24 January 2022; Vol. 818, c. 20-21.]
Those are not my words, but those of former Treasury Minister, Lord Agnew. Some £4.3 billion of taxpayers' money has been written off as a result of the Chancellor's fraud failures; a thousand loans were made to companies that were not even trading at the start of the pandemic; and £50,000 was awarded to a person with 48 criminal convictions, and £25,000 to a drugs gang. Is the Chancellor really saying that such examples strike the right balance between getting money to the businesses that need it and looking after the public finances? Will he inform the House of the total amount lost to fraud underwritten by the Treasury and the amount recovered to date?
“Schoolboy errors… a combination of arrogance, indolence and ignorance… nothing less than woeful.”—[Official Report, House of Lords, 24 January 2022; Vol. 818, c. 20-21.]
Those are not my words, but those of former Treasury Minister, Lord Agnew. Some £4.3 billion of taxpayers' money has been written off as a result of the Chancellor's fraud failures; a thousand loans were made to companies that were not even trading at the start of the pandemic; and £50,000 was awarded to a person with 48 criminal convictions, and £25,000 to a drugs gang. Is the Chancellor really saying that such examples strike the right balance between getting money to the businesses that need it and looking after the public finances? Will he inform the House of the total amount lost to fraud underwritten by the Treasury and the amount recovered to date?
First, I take this opportunity to pay tribute to Lord Agnew for all his work. I am very grateful to him for everything that he did, and of course we will listen to what he has to say. With regard to the hon. Lady's questions, she talked about fraud estimates. It is important to be clear, as my right hon. Friend the Chief Secretary to the Treasury said, that nothing has been written off in that regard—we are going after each and every person we suspect of defrauding the taxpayer. I am pleased to tell her that the original estimate of £4.9 billion of fraud—it was an estimate, independently provided—has already been revised down by a third since it was first published, thanks to the actions that we are taking. She asked how much has been paid out already, and I can confirm that the sum total to date is £13 million.
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Assessment & feedback
Fraud estimates vs actual figures
Clarifying Estimates
Response accuracy
Q5
Partial Answer
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Context
The question challenges the Chancellor's stance on writing off losses from fraudulent schemes.
It is in black and white on the Government's own website still today, and in the Government accounts—£4.3 billion written off. Despite the Chancellor's words, “written off” means giving up on that money. This is just the tip of the iceberg. [Interruption.] It is on the Government's website and in the Government's accounts. Can he tell us how many of the covid fraud cases have gone to court? Given his failure, will he ask the National Crime Agency to conduct a full investigation into all cases of covid fraud and ensure that those responsible are held to account? It is not the Chancellor's money to write off; it is the public's money, and the public want their money back.
It is great that the Labour party has realised that it is the taxpayer's money and not the Government's money. I am glad that it has joined us in recognising that. I can say categorically that no one has written this off; we are going after it, as the Chief Secretary said. We invested £100 million last March in creating a taxpayer protection taskforce staffed with over 1,200 people to recover hopefully up to £1 billion. That is just one of the many things we are doing, as well as taking more powers to go after rogue directors, enabling Companies House to do exactly that. The hon. Lady asked about the National Crime Agency. I am pleased to tell her that it has already helped in investigations that have led to 13 arrests with regard to bounce back fraud, so that work is already under way.
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Assessment & feedback
Refusal to write off funds
Going After Fraudsters
Investigations Ongoing
Response accuracy
Q6
Partial Answer
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Context
The question proposes expanding auto-enrolment to lower earners and younger individuals.
Does the Chancellor agree that one of the key lessons from the pandemic was about helping people to improve their own financial resilience by saving? Will he now finally support measures to extend auto-enrolment down to the first pound of earnings and down to those aged 18, so that we can help everyone start saving for a pension for their retirement?
My hon. Friend, who has great expertise in this area, makes a reasonable point. The Government's Help to Save scheme is under way, but the Government continue to work very closely with the Money and Pensions Service to look at new ways of increasing financial resilience and getting young people to understand the opportunities of saving earlier.
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Assessment & feedback
Help to Save scheme vs auto-enrolment extension
Closely Working With Services
Response accuracy
Q7
Partial Answer
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Context
Lord Agnew resigned citing high levels of fraud in the bounce-back loan scheme. The issue is exacerbated by inadequacies at Companies House.
Lord Agnew resigned because he could no longer defend the level of fraud in the bounce back loan scheme and the lack of action to tackle it. I asked if there will be anti-money laundering responsibility for Companies House as part of an economic crime Bill.
This is a key priority for the Treasury and measures aligning with the Financial Action Task Force report from 2018 are something we agree with.
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Assessment & feedback
Specific action or timeline not provided, only that it is a priority
Key Priority For Us In The Treasury
Response accuracy
Q8
Partial Answer
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Context
Barnstaple has large vacant units that could be repurposed for smaller retail spaces and housing.
Does the Government have plans to help high streets like Barnstaple by reforming business rates or establishing a redevelopment fund?
Business rates relief was announced at the autumn Budget and Barnstaple is encouraged to apply for the £4.8 billion levelling-up fund.
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Assessment & feedback
Specific plans or measures not outlined, only encouragement to apply for existing funds
Encouragement To Apply
Response accuracy
Q9
Partial Answer
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Context
Oil and gas companies are expected to report near-record income, but the Government opposes a one-off £1.2 billion windfall tax.
Last month, the Government opposed Labour's plan for an oil and gas windfall tax. Pensioners and people on modest incomes are struggling. Will Ministers reconsider their stance?
The oil and gas industry pays significant taxation, and existing measures like the energy price cap are in place to help those struggling with bills.
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Assessment & feedback
No commitment to reconsidering the windfall tax proposal
Existing Measures
Response accuracy
Q10
Direct Answer
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Context
The hospitality and tourism industry was hard-hit again over the festive period.
Will the Financial Secretary consider extending the reduced rate of VAT on hospitality and tourism to support these industries further?
The extended 5% reduced rate of VAT for those sectors was already in place until the end of September, and the current 12.5% rate has cost £8 billion.
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Assessment & feedback
Response accuracy
Q11
Partial Answer
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Context
The Government failed to implement recommendations from the 2020 Russia report.
Will the Chancellor explain his failure to take action on the Russia report and name a date for implementation of measures in the economic crime Bill?
The Home Secretary and others strongly support the inclusion of the economic crime Bill, which contains important anti-money laundering measures.
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Assessment & feedback
No specific timeline provided for legislative action
Strongly Support
Response accuracy
Q12
Direct Answer
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Context
Local authorities have highlighted the benefits of early intervention in tackling poverty.
What assessment is planned by the Treasury to establish the economic benefits of investing in early intervention services?
The supporting families programme provided funding and was subject to a national evaluation showing a £2.28 economic benefit per £1 spent.
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Assessment & feedback
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Q13
Partial Answer
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Context
Bus manufacturing is an important employment base in the north of England, Scotland and Northern Ireland.
Why every scheme so far has been for electric vehicles and not hydrogen technology. Is this a Treasury bias or BEIS bias?
The spending review contained billions of pounds for new bus transformation deals and thousands more zero-emission buses, with a focus on electric vehicles. The Prime Minister is passionate about hydrogen buses.
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Assessment & feedback
No specific explanation given, only mention of the Prime Minister's interest in hydrogen buses
Passionate About Hydrogen Buses
Response accuracy
Q14
Partial Answer
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Context
Victims of the London Capital & Finance scandal received 80% compensation, while those from Equitable Life received only 22%. There is a principle of fairness and proper compensation.
I have no argument against compensation being paid to the victims of the London Capital & Finance scandal, but I am concerned that they were paid 80% of the losses, yet the 800,000 victims of Equitable Life received only 22%. Does the Minister agree that it is a principle of fairness and of ensuring that people who save for their retirement are properly compensated?
I thank my hon. Friend for his question. He has a long-standing interest in the issue. The difference between the two is that people received compensation from Equitable Life on the basis of relative losses, which is the gap between what they received from their policy and what they could have expected from investing in a similar product. With LCF, the bondholders were expected to lose the majority of their principal investment and stood to get less back than they put in. The schemes were looked at in the context of their respective instruments and appropriate support was given. There are no plans to open up compensation for Equitable Life again.
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Assessment & feedback
The specific ask about principle fairness was not directly addressed, only explained differences between cases.
Explaining The Difference
Response accuracy
Q15
Partial Answer
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Context
The Budget confirmed that total funding through the UK shared prosperity fund will match EU funds in each nation, including Cornwall. If applied to all less-developed regions, South Yorkshire would receive £900 million over seven years.
The Budget confirmed that total funding through the UK shared prosperity fund will, at a minimum, match the size of EU funds in each nation, and in Cornwall. If the Treasury were to do the same with all the other less-developed regions, as it should, South Yorkshire would be on course to receive £900 million of investment over the next seven years. Will the Chief Secretary to the Treasury give an assurance that we will get our fair share?
I have the highest regard for the hon. Gentleman, and he is a doughty champion for the people of South Yorkshire. The levelling up White Paper will be a key moment in setting out our plans in that space, and my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities will be coming to the House shortly to set out our plans in that regard.
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Assessment & feedback
Did not give assurance about fair share specifically, referred to future White Paper.
Future Reference
Response accuracy
Q16
Partial Answer
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Context
The Government's intent that levelling up should be measured by outcomes not just spending, but the data to measure its effect varies across UK.
I welcome the Government's intent that levelling up should be measured by more than simply spending money. Indeed, the data that is collected across the UK to measure its effect varies. What is my right hon. Friend doing to address that, and will he reassure Aberconwy residents of an effective UK-wide levelling up?
Absolutely. My hon. Friend makes an important point, and we should indeed measure success in outcomes, not just inputs. The Department's delivery of levelling up ambitions will be monitored, and it will of course be held to account. I point my hon. Friend towards the levelling up White Paper, which will be published shortly.
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Assessment & feedback
Did not specify actions taken but referred to future white paper.
Future Reference
Response accuracy
Q17
Partial Answer
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Context
Going after money means the Chancellor is recovering a debt, leading to a financial hole. Lord Agnew resigned.
Going after money means that the Chancellor is recovering a debt, so there is a hole in the finances. Will the Chancellor tell the House this: why did Lord Agnew resign?
Lord Agnew, obviously, has spoken for himself, and I do nothing but thank him for his service. We look forward to continue working on all the areas he has mentioned, in most of which we are already undertaking work. We are relentless in our aim to tackle those who have defrauded the taxpayer, and we will not stop until we have got as much back as we can.
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Assessment & feedback
Did not address resignation directly but referred to debt recovery efforts.
Debt Recovery
Response accuracy
Q18
Partial Answer
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Context
The Wrexham Gateway levelling-up fund bid attracts around £35 million of private finance.
The Wrexham Gateway levelling-up fund bid attracts around £35 million of private finance. However, that investment in Wrexham will depend on a successful levelling-up fund bid the next time round. Will the Minister explain what considerations are made for bids with substantial private investment?
My hon. Friend is a fantastic advocate for Wrexham, and for wider pride in north Wales, which is incredibly important. I am happy to meet her to discuss any aspect of the bid process that it would be helpful to discuss further.
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Assessment & feedback
Did not address considerations specifically but offered meeting.
Future Meeting
Response accuracy
Q19
Partial Answer
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Context
The Government's start-up scheme invested millions of pounds into an online gambling company. There is a review underway for the Gambling Act 2005.
Will the Chancellor confirm or deny that millions of pounds of taxpayers' funds have been sunk into an online gambling company with the Government's start-up scheme? If so, is this the right time to invest in a private gambling firm, since a review of the Gambling Act 2005 is already being undertaken?
I thank the hon. Gentleman for his question. This relates to the future fund, a rules-based scheme that means that any firm is eligible for funding, providing it meets the required eligibility criteria for the scheme and passes the necessary checks. Neither the Government nor the British Business Bank chose specific investments; it is about helping innovative equity-backed companies to weather the economic disruption caused by covid and continue their long-term growth projection.
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Assessment & feedback
Did not confirm or deny directly but explained rules-based scheme.
Rules Based
Response accuracy
Q20
Direct Answer
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Context
The establishment of the Darlington economic campus is a step towards levelling up in Darlington.
I commend my right hon. Friend for the steps he has taken to level up in Darlington, with the establishment of the Darlington economic campus. Will he update the House on the progress to bring high-quality, well-paid jobs to my constituency?
I am delighted to update the House on the progress the Treasury is making with our Darlington economic campus. We have already recruited more than 100 Treasury employees to be based in Darlington, and we are on track for our ambition of 300 employees based there.
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Assessment & feedback
Response accuracy